On 30 September, a session of the ISEG Research Seminars will take place from 13.00 to 14.00. The guest speaker will be Alessandro Gavazza from the London School of Economics. This session will take place in Amphitheater 4 (Quelhas Building, 4th floor).
The ISEG Research Seminars are held every week on Wednesdays, with the participation of professors from ISEG, as well as from other Portuguese and international educational institutions.
Title: Bank Deposit Pricing in the Euro Area
Abstract: We study the pricing of bank deposits in the Euro area during 2007–2024. We find that the pass-through of policy rates to demand deposit rates is low, varies across countries, and decreases over time. We estimate an equilibrium model of bank deposit markets and find that depositors’ price sensitivity exhibits significant heterogeneity across EU markets and over time. Rate-sensitive depositors switched to higher-yielding savings products, thereby decreasing the rate sensitivity of the remaining pool of demand deposits and increasing banks’ market power, which explains the sluggish pass-through following the European Central Bank’s rate hikes in 2022.
